CHINESE GOVERNMENT REVIEWS CASE FOR THCs

CHINESE GOVERNMENT REVIEWS CASE FOR THCs       China’s Ministry of Communications has requested industry comments on the practice of shipping lines’ terminal handling charges in China.
   The review follows complaints made by Chinese shippers’ associations about the introduction of terminal handling charges by container carriers.
   The Chinese Ministry of Communications published a notice on Nov. 29 asking for opinions on the terminal handling charges.
   “THCs have been the target of criticism of the Chinese shippers’ association since the beginning of this year (2002),” said Ted Kawamura, managing director of the Japan Shippers’ Council.
   THCs are common in the international liner shipping trades, but were only recently introduced in China by carriers. Shipping lines contend that terminal handling charges offset a portion of the port costs related to the movement of cargoes.
   Chinese shippers who export Free On Board have to pay the terminal handling charge in their country, even though ocean transportation is arranged by the overseas consignees.

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